What is the deadline for providing written notice of intent to renew a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2. Renewal Terms. Subject to the terms and conditions set forth in Section 5.3 below, Franchisee may renew its franchise upon the expiration of the initial Term or any renewal Term for additional consecutive ten (10) year Terms by giving Franchisor written notice of intent to renew at least six (6) months but not more than nine (9) months prior to the expiration date of the then current Term. Failure of the Franchisee to give such notice shall constitute an Election Not to Renew, unless the law of the state in which the Home is located provides otherwise. The Franchisee shall not be required to pay any renewal fee or additional franchise fee in connection with any renewal hereunder.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee who wishes to renew their franchise agreement must provide written notice of their intent to renew to Beehive Homes at least six months prior to the expiration date of the current term. However, this notice cannot be given more than nine months before the current term's expiration. The franchise agreement's initial term lasts for ten years, ending on the last day of the calendar month after franchise royalties first become due.
Effectively, a Beehive Homes franchisee has a three-month window to submit their renewal notice. Missing this window means the franchisee has elected not to renew, unless the laws of the state where the Beehive Homes location is situated dictate otherwise.
It is important to note that the renewal is contingent upon the franchisee meeting certain conditions at the time of the renewal notice and on the first day of the renewal term. These conditions include not being in default of any agreements with Beehive Homes, owning the home directly or indirectly, agreeing to the terms of the then-current franchise agreement (which may differ materially from the original), and ensuring the home, equipment, and procedures meet the standards applicable to new franchisees.
If a franchisee elects not to renew, the agreement does not immediately expire. Instead, it continues on a month-to-month basis until Beehive Homes terminates it with a written notice at least 30 days prior to the termination date. This provides a transition period, but the franchisee operates under the uncertainty of a potential termination notice from Beehive Homes.